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DECREE

STIPULATING THE MANAGEMENT AND USE OF STATE ASSETS OF OVERSEAS VIETNAMESE MISSIONS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 16, 2002 Law on the State Budget;

Pursuant to the June 3, 2008 Law on Management and Use of State Assets;

Pursuant to the June 18, 2009 Law on Overseas Representative Missions of the Socialist Republic of Vietnam;

At the proposal of the Minister of Finance and the Minister of Foreign Affairs,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation This Decree regulates:

1. State assets of overseas representative missions of the Socialist Republic of Vietnam (below collectively referred to as representative missions).

2. State assets of other overseas Vietnamese agencies outside the organizational structure of representative missions (below collectively referred to as other agencies).

3. Assets being land, working offices, non-business facilities, houses and other assets affixed to land which have been exchanged under agreements between the Government of the Socialist Republic of Vietnam and the governments of host countries; real estate leased under agreements or asset lease contracts signed by representative missions or other agencies which are assets managed and used by the Vietnamese State while those agreements or contracts are valid.

4. State assets managed and used by overseas Vietnamese enterprises comply with current law and are not governed by this Decree.

Article 2. Subjects of application

This Decree applies to:

1. Overseas representative missions of the Socialist Republic of Vietnam as defined by the June 18, 2009 Law on Overseas Representative Missions of the Socialist Republic of Vietnam.

2. Other overseas Vietnamese agencies outside the organizational structure of representative missions, which are funded by the state budget or sources originating from the state budget and established by ministries, ministerial-level agencies, government-attached agencies, other central agencies or provincial-level People's Committees.

3. Other agencies and entities involved in the management and use of state assets of overseas Vietnamese representative missions or other agencies.

Article 3. State assets of overseas Vietnamese representative missions or other agencies

1. State assets of overseas Vietnamese representative missions or other agencies (below collectively referred to as overseas Vietnamese missions) include:

a) Land, working offices, non-business facilities, houses and other assets affixed to land; b) Vehicles; c) Machines, equipment and working facilities; d) Other assets defined by law.

2. Sources forming state assets of overseas Vietnamese missions include:

a) Assets procured by overseas Vietnamese missions with money provided by the state budget or originating from the state budget;

b) Assets received as donation or aid of foreign governments, foreign non-governmental organizations and other international organizations; assets donated or presented by domestic or foreign organizations or individuals and other assets over which state ownership has been established.

Article 4. Principles on management and use of state assets of overseas Vietnamese missions

1. The supply and procurement of state assets of overseas Vietnamese missions must comply with the criteria, norms and regimes promulgated by competent Vietnamese agencies.

2. The order and procedures for investment in, procurement, furnishing, sale, transfer, liquidation and destruction of state assets of overseas Vietnamese missions comply with the following documents:

a) The 1961 Vienna Convention on Diplomatic Relations;

b) Agreements signed between the Vietnamese Government and the governments of host countries;

c) Laws of host countries;

d) Vietnamese law.

If appear inconsistencies between the above documents, the prevailing document shall be selected in the above priority order.

3. Assets of overseas Vietnamese missions must be used for proper purposes as designated, ensuring thrift and efficiency in accordance with Vietnamese law, laws of host countries and relevant agreements or contracts.

4. It is forbidden to use state assets for improper purposes; to cause loss, waste or breakdown of or damage to state assets.

5. Insurance must be bought for assets being vehicles, working offices, non-business facilities, houses and other assets affixed to land under regulations of host countries.

6. State assets of overseas Vietnamese missions shall be maintained and repaired strictly under the prescribed regimes and technical standards, in accordance with Vietnamese law and the laws of host countries and with allocated budget estimates.

7. Upon the expiration of their useful life, if they are no longer usable, assets of overseas Vietnamese missions shall be liquidated under decisions of competent authorities.

8. State assets of overseas Vietnamese missions shall be accounted under the non-business administrative accounting regime. Assets leased or only managed and used under agreements or leasing contracts by overseas Vietnamese missions shall be monitored separately.

9. Annually, overseas Vietnamese missions shall report on the management, use and disposal of assets under the Ministry of Finance's guidance with regard to the following state assets:

a)Working offices, non-business facilities and houses;

b) Automobiles of all types;

c) Other assets with the original prices of USD 30,000 or more)1 asset unit (equivalent in foreign currencies) as stated in accounting books.

10. In case the regulations on management and use of state assets in this Decree and relevant laws are violated, heads of overseas Vietnamese missions and concerned individuals shall be administratively sanctioned, disciplined or examined for penal liability under law; if causing damage, they shall pay compensations under law.

Chapter II

SPECIFIC PROVISIONS

SECTION 1

MANAGEMENT AND USE OF LAND, WORKING OFFICES, NONBUSINESS FACILITIES, HOUSES AND OTHER ASSETS AFFIXED TO LAND

Article 5. Investment in the construction and purchase of land, working offices, non-business facilities, houses and other assets affixed to land of overseas Vietnamese missions

1. Investment in the construction, purchase of land, working offices, non-business facilities, houses

and other assets affixed to land of overseas Vietnamese missions shall be made in the following

cases:

- Working offices, non-business facilities or houses are not yet available;

- The area of the existing offices, non-business facilities or houses is below 70% of the set criteria and norms, greatly affecting the assigned tasks.

- Working offices, non-business facilities or houses are seriously degraded, failing to ensure safety for users;

- Other cases as decided by the Prime Minister.

2. Competence to decide on investment in the construction and purchase of land, working offices, non-business facilities, houses and other assets affixed to land of overseas Vietnamese missions:

a) The Prime Minister will decide on projects with a total capital of USD 10 million or more each;

b) Ministers, heads of ministerial-level agencies, heads of government-attached agencies, heads of other central agencies and chairpersons of provincial-level People's Committees (below collectively referred to as ministers and heads of the managing agencies) may decide or decentralize the competence to decide on other projects.

3. The Prime Minister shall provide for the order and procedures for investment in the construction and purchase of land, working offices, non-business facilities, houses and other assets affixed to land of overseas Vietnamese missions.

Article 6. Management and use of working offices, non-business facilities, houses and other assets affixed to land under the ownership of the Vietnamese State

1. Overseas Vietnamese missions shall arrange houses and land for independent use of working offices and non-business facilities from houses. If conditions do not permit such independent use, they shall properly rearrange workplaces and residences of their staff members in order not to affect foreign relation activities.

2. After arranging workplaces and residences for staff members under the set criteria and norms, unused areas, if any, may be arranged as guest rooms for visitors. Heads of overseas Vietnamese missions shall set guesthouse service charge rates on the principle of fully covering expenses without state budget supports for this service.

3. Working offices, non-business facilities, houses and other assets affixed to land which are used for improper purposes or left unused shall be recovered and handled according to regulations.

Article 7. Maintenance and repair of working offices, non-business facilities, houses and other assets affixed to land which are under the ownership of the Vietnamese State

1. The maintenance and repair of working offices, non-business facilities and houses must comply with the prescribed regimes and technical standards in accordance with Vietnamese law and the laws of host countries and with allocated budget estimates.

If assets being working offices, non-business facilities, houses or other assets affixed to land are degraded, overseas Vietnamese missions shall prepare projects on their renovation and repair and submit them to competent authorities defined in Clause 2 of this Article for approval. Regular renovation and repair, overhaul or upgrading of working offices, non-business facilities and houses may be carried out only when it has already been arranged in allocated budget estimates.

2. Ministers or heads of the managing agencies shall approve projects on overhaul or upgrading of working offices, houses and other land-attached assets of overseas Vietnamese missions under their respective management.

For projects on regular repair or minor repair, ministers or heads of the managing agencies may decentralize the approval thereof to heads of overseas Vietnamese missions.

Article 8. Sale of working offices, non-business facilities, houses and other assets affixed to land which are under the Vietnamese State's ownership

1. State assets being working offices, non-business facilities, houses and other assets affixed

to land may be sold in the following cases:

a) Overseas Vietnamese missions no longer need to use them;

b) They have been used inefficiently.

2. Competence to decide on the sale of state assets:

a) The Prime Minister will decide on the sale of state assets being working offices, non-business facilities, houses and other assets affixed to land with the original prices of USD 10 million or more each as stated in accounting books at the proposal of ministers or heads of the managing agencies and the Minister of Finance;

b) Ministers, heads of the managing agencies will decide on the sale of assets being working offices, non-business facilities, houses and other land-attached assets with the original prices of under USD 10 million each as stated in accounting books after obtaining the agreement of the Minister of Finance.

Article 9. Liquidation of working offices, non-business facilities, houses and other land-attached assets under the Vietnamese State’s ownership

Pursuant to Clause 7, Article 4 of this Decree, ministers or heads of the managing agencies may decide or assign heads of overseas Vietnamese missions to decide on the liquidation of working offices, non-business facilities, houses and other land-attached assets under the Vietnamese State’s ownership, which fall under their respective management.

Liquidation of assets of an overseas Vietnamese mission shall be carried out via an Asset Liquidation Council set up by the head of the overseas Vietnamese mission. Such Council comprises the head of the concerned overseas Vietnamese mission as chairman and representatives of concerned sections of that overseas Vietnamese mission as members.

Proceeds from asset liquidation shall be handled under the law on the management and use of state assets.

For assets being working offices, non-business facilities or houses requiring liquidation ahead of time, ministers or heads of the managing agencies may consider and decide on their liquidation after obtaining the written agreement of the Ministry of Finance.

Article 10. Management and use of working offices, non-business facilities, houses and other land-attached assets under agreements

1. Assets being working offices, non-business facilities, houses and other land-attached assets which are exchanged under the agreements between the Government of the Socialist Republic of Vietnam and the governments of host countries shall be managed and used under those agreements and laws of host countries.

2. Where agreement-binding assets being working offices, non-business facilities, houses and other land-attached assets are degraded and need to be renovated and repaired outside the scope of the agreements, heads of overseas Vietnamese missions shall, based on the agreements with functional bodies of the host countries, propose ministers or heads of the managing agencies to consider and decide thereon in accordance with the assigned budget estimates.

Article 11. Management and use of leased working offices, non-business facilities, houses and other assets

1. Overseas Vietnamese missions may lease working offices, non-business facilities, houses and other assets in the following cases:

a) Their working offices, non-business facilities, houses and other assets are not yet available or inadequate as compared to use criteria and norms, seriously affecting their assigned tasks;

b) Lease of working offices, non-business facilities, houses and other assets is more efficient than the construction or purchase thereof.

2. The quantities of leased working offices, non-business facilities, houses and other assets must conform with the use criteria and norms; the leasing prices must conform with the leasing prices of houses with similar conditions in local markets.

3. The lease of working offices, non-business facilities, houses and other assets shall be decided by ministers or heads of the managing agencies or heads of overseas Vietnamese missions as decentralized by ministers or heads of their managing agencies in accordance with the assigned budget estimates.

4. The management and use of leased assets comply with agreements, leasing contracts and rules promulgated by heads of overseas Vietnamese missions.

5. In case insurance must be bought for leased assets under regulations of host countries, overseas Vietnamese missions shall buy insurance.

6. In case, under leasing contracts, the lessors demand deposits to be paid by the lessees, overseas Vietnamese missions will be provided with advances but shall refund them.

7. Ministers or heads of the managing agencies shall decide or assign heads of overseas Vietnamese missions to decide in accordance with contracts on compensation for or repair of leased working offices, non-business facilities, houses and other assets which are out of order while in use.

SECTION 2

MANAGEMENT AND USE OF VEHICLES

Article 12. Purchase of vehicles

1. Based on the vehicle norms, management and use regimes prescribed by the Prime Minister and on the assigned budget estimates, heads of overseas Vietnamese missions shall report to ministers or heads of their managing agencies for decision the prices and types of vehicles to be necessarily purchased as suitable to the practical situation of each host country.

2. The purchase or replacement of vehicles must comply with the prescribed criteria, norms and regimes. In case the laws of host countries contain provisions different from those of Vietnamese law, the provisions of the host countries' laws prevail.

The purchase or replacement of vehicles must be accompanied with vehicle purchase and sale contracts. In case host countries do not provide for such contracts, valid purchase and sale vouchers are required.

3. When conditions permit renewal of vehicles under the preferential regime of host countries, heads of overseas Vietnamese missions shall report thereon to ministers or heads of their managing agencies for consideration and decision within the limit of the assigned budget estimates.

Article 13. Management and use of vehicles

1. Vehicles of overseas Vietnamese missions must be used for proper purposes, proper persons and the criteria and norms set by competent authorities.

2. Heads of overseas Vietnamese missions shall promulgate regulations on the management and use of vehicles at their missions to ensure thrift, efficiency and conformity with the Prime Minister's regulations and working conditions in each host country.

Article 14. Liquidation of vehicles

The liquidation of vehicles used in service of activities of overseas Vietnamese missions complies with Article 9 of this Decree.

SECTION 3

MANAGEMENT AND USE OF MACHINES, EQUIPMENT, WORKING FACILITIES AND OTHER ASSETS

Article 15. Procurement of machines, equipment, working facilities and other assets

1. Based on the criteria, norms and regimes of management and use of machines, equipment, working facilities and other assets prescribed by competent authorities and the assigned budget estimates, heads of overseas Vietnamese missions shall report to ministers or heads of their managing agencies for decision on the quantity, prices and types of assets to be necessarily purchased in conformity with the practical conditions of each host country.

2. Ministers or heads of the managing agencies shall decide or assign heads of overseas Vietnamese missions to decide on the purchase of assets being machines, equipment, working facilities and other assets falling within the scope of their management.

Article 16. Management and use of machines, equipment, working facilities and other assets in service of activities of overseas Vietnamese missions

1. Machines, equipment, working facilities and other assets of overseas Vietnamese missions shall be managed and used in accordance with the prescribed regimes.

2. It is strictly forbidden to exchange, donate, present or give away state assets. The furnishing, lease, lending or transfer of assets may be carried out only when so permitted by competent authorities defined in Clause 2, Article 15 of this Decree.

3. Officials and employees assigned to manage or use machines, equipment, working facilities and other assets shall preserve them to ensure their economical and efficient use.

4. Upon the expiration of their working terms, officials and employees shall hand over the state assets assigned to them to their missions; if causing loss of or damage to the assets due to their fault, they shall pay compensations for the remaining values of the assets.

Article 17. Asset liquidation

1. The liquidation of machinery, equipment, working facilities and other assets complies with Article 9 of this Decree.

2. Information machines and information-storing devices classified as state secrets and cultural and art articles classified as national antiques of Vietnam must not be liquidated. If these assets are unusable, heads of overseas Vietnamese missions shall decide to destroy them after obtaining opinions of professional agencies at home and ministers or heads of their managing agencies. Prior to destruction, documents and data stored and archived in the machines and information-storing devices must be safely secured.

Chapter III

RESPONSIBILITIES FOR STATE MANAGEMENT OF STATE ASSETS OF OVERSEAS VIETNAMESE MISSIONS

Article 18. Responsibilities of the Ministry of Finance

1. To guide the implementation and report to the Government on the management and use of state assets of overseas Vietnamese missions.

2. To examine, inspect and handle violations of law on the management and use of state assets of overseas Vietnamese missions according to its competence.

3. To coordinate with the Ministry of Foreign Affairs and concerned ministries, sectors and agencies in prescribing the criteria, norms, regimes of management and use of other state assets for overseas Vietnamese missions based on their operation requirements and available financial sources.

Article 19. Responsibilities of ministries, ministerial-level agencies, government-attached agencies, other central agencies and provincial-level People’s Committees

1. To assume the prime responsibility for, and coordinate with the Ministry of Finance as well as concerned ministries, sectors and agencies in prescribing the criteria, norms and regimes of management and use of other state assets for overseas Vietnamese missions based on their operation requirements and available financial sources.

2. To decide or assign competent authorities to decide on the management and use of state assets (special assets, if any) of overseas Vietnamese missions under their respective management according to this Decree and other relevant documents.

3. To direct, guide and examine overseas Vietnamese missions under their respective management in the management and use of state assets according to this Decree and other relevant documents.

4. To examine, inspect and handle violations of the law on the management and use of state assets of overseas Vietnamese missions under their respective management according to their competence.

5. To annually report to the Ministry of Finance on the management and use of state assets of overseas Vietnamese missions under their respective management.

Article 20. Responsibilities of heads of overseas Vietnamese missions

1. To directly manage and use state assets of overseas Vietnamese missions under their management strictly according to this Decree and other relevant documents, excluding defense and security assets.

2. To decide on the purchase, repair, maintenance, liquidation and lease of assets under the decentralization of ministers or heads of their managing agencies.

3. To formulate Regulations on management of state assets of overseas Vietnamese missions under their respective management, clearly defining the responsibility of each section and individual assigned to manage and use the assets; to direct and organize the management and use of state assets in a thrifty and efficient manner in accordance with this Decree and other relevant documents.

4. To report to ministers or heads of the managing agencies on the management and use of state assets of overseas Vietnamese missions under their respective management.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 21. Implementation provisions

1. This Decree takes effect on April 26, 2010. All previous provisions contrary to this Decree are annulled.

2. The contents of management and use of state assets of overseas Vietnamese missions which are not mentioned in this Decree comply with the provisions of the Law on Management and Use of State Assets and its guiding documents.

Article 22. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and other central agencies, chairpersons of provincial-level People's Committees and concerned organizations and individuals shall implement this Decree.